Teresa Ooi
ORGANIC farming is expected to be one of the fastest growing industries this year.
This, thanks to higher disposable incomes and increasing demand for organic food, according to a survey by research group IbisWorld.
Revenue from organic farming is forecast to rise by 14 per cent this year to $475 million.
According to the Biological Farmers Association, Australians spent nearly $1 billion on organic products last year, up from $947m the previous year.
More than 60 per cent of Australians buy organic occasionally, an increase of 40 per cent compared with 2008.
Most bought organic because the produce was chemical-free, the association said.
Rod May, an organic farmer for more than 25 years, has noted a steady rise in customers buying his organic vegetables and meat.
At a 80ha farm near Blampied, north of Ballarat in Victoria, May and his brothers Doug and Greg have broadened their organic portfolio, which now includes wine and an on-farm restaurant.
“Previously we used to sell our fruit and vegetables to big companies in Queensland and NSW. Today, we sell them direct to customers.”
Demand for organic products, especially fruit and vegetables, has been steadily rising over the past five years, IbisWorld said.
With major retailers such as Coles and Woolworths promoting their organic produce lines, the industry was set to fly this year, IbisWorld general manager Robert Bryant said.
“Higher disposable income, coupled with rising awareness of environmental sustainability and the increased convenience of organic foods, all point to continuing growth in this industry,” Mr Bryant said.
Farmers are benefiting from higher demand for organic produce as they can be sold at a higher premium.
As organic produce became more readily available, Mr Bryant said, prices of certified organic products would decline over time.
Other industries set to outperform this year include video games, up 11.9 per cent, electricity distribution (9.3 per cent), motorcycle sales (7.4 per cent) and domestic airlines (6.8 per cent), the survey finds.
Mr Bryant said higher petrol prices would drive more consumers away from traditional cars to seek alternative means of transport.
“As they try to cut fuel costs, many would choose to ride a motorcycle instead,” he said.
Industries forecast to suffer this year include landline home phones, which would decline 8.1 per cent, apple and pear growing (down 6.8 per cent), telecommunications reselling (down 5.4 per cent), DVD and CD sales (down 2.1 per cent) and professional photography (down 1.2 per cent).
Source: www.theausralian.com.au
